Indicate Whether Each of the Following Statements Is True or False.In

Essay

Indicate whether each of the following statements is true or false.In deciding whether to investigate a variance, managers should consider the materiality, but not the type or direction of the variance.A material variance is one that will influence stockholders' investment decisions.The primary advantage of a standard cost system is controlling costs efficiently.Ideal standards will likely lead to variances that need not be investigated because they are not the result from abnormalities.Even a well-established and maintained standard cost system is likely to damage employee morale.